U.S. Alleges KPMG Ex-Partner Got Cash for Tips

4/11/2013 4:29PM

A former KPMG partner has been charged with passing stock tips to a friend who gave him cash bundles and gifts including a Rolex watch. Colin Barr reports. Photo: ‘Exhibit A’ in U.S. Attorney’s Office for Eastern District of California criminal complaint.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... a full month on ... a major accounting function ... with insider trading scheme allegedly involved tales ... with ten thousand Billabong ... cash concert tickets and a Rolex watch ... level and mall right here right now on the New Saab good afternoon and welcome I'm Simon Constable ... will Signals Colin Barr joins us on the site to discuss the latest on this developing story an uncommon that I know you've extended visit is cozy and warm one for my kids coming out right this of this of this scandal with the call that looks a lot worse now than it did ... for instance yesterday and before ... it started out as what we thought was ... the in isolated cases of ... of former partner KPMG passing tips about Scotland Scotland in Android his tomb and we are now know is named Brian Shaw ... who's treating on trading on the increase we thought this cover to come meet the present covers five and this is a photo of the one of the alleged ... payoffs to ... comments from the U S Attorney's office drama and Zumiez accused of walking and getting getting cash so I'm thing was the isthe was that was the of a big partner KPMG accounting for me on a company's books of an access to all kinds of financial information and ... potential merger plans and things like this ... and so the allegation is that the Scotland in with the use of this information would feed it to Bryant Rockwood trade on the information you need not allegedly more than million dollars trading on and to um what one of the company some companies involved of of Alaska says the RSC and Pacific capital it's something we rented Iran which of these little honestly have ... a slightly obscure companies one of them is the rental company of your new book The shake up in the number one bank that ... was purchased by a larger bank ... aam two of these companies thus doctors and doctors are for footwear company is the perfect answer urine through foot footage of their eye and that ... nothing would ever do that ... ALM so what what is this um what is this guy is gone and facing in times of ... the best light years could face five years and in prison ... on the schedule due to appear in court this afternoon in Los Angeles ... it's interesting with the strategy appears to be good to just quit say I made mistakes I was stupid I should have done this I know its fourth win was and is in fact a striking semi secret to say look I'm fat cropped up and placed it on cocoa reason why I don't know it's hard it's hard to judge the IPO to him is he's he's got the keys admitted that he did these things that he's going to be with you here he's he's unlikely to do some prison time here ... the question is whether this will win him any any new ... awards sensing I'm gonna watch a lesser sentence now and in addition to the presence of a to B town and fifty thousand will find trial I and and that doesn't include any simple aam stuff as well but that was the SCC right ... so this is this to prevent what is the impact on KPMG which they make the transition question right is that the owners of been sort of Whiteley ... of you for you ... and for their that was perceived to be there for performance ... in the financial crisis we have all these banks that had few qualms and none of them had Eiopa por por bookkeeping reports of forced some failed some receive bailout except for ... aam and and this is the latest case in which you for saying no can we trust anybody ... a KPMG would say what we have systems in place and he had no system can defeat the determined individual ... but that the way this case involves wearing a region leave me up the case of the charges were just would prefer that that that reading was just related ... to two companies on which one deems to be auditor ... and now appears to include five companies you in various states across the across the firm ... if it does the real questions about their control I think ... that's interesting until the whole time I am not because I ran much fun to draw all the Wall Street doll mall on maps on the vs Datacom has a ... very fast developing story